This bill modifies the Michigan Trust Fund Act to establish a permanent Community District Education Trust Fund designed to help schools in specific districts that are currently prohibited from raising local taxes. The fund will be financed by depositing up to $617 million in tobacco settlement revenue starting in fiscal year 2017, with the money used to cover gaps in state funding for these districts. The legislation also sets a sunset provision requiring that any remaining balance in the fund be transferred to the state school aid fund after September 30, 2026.
SB 721 amends Michigan's Commercial Redevelopment Act to update property tax exemption rules for commercial facilities. It limits total exemption periods to 12 years (including extensions), requires local governments to document criteria for renewing exemptions, and extends the deadline for new exemptions from 2025 to 2035. The bill also allows the state treasurer to temporarily exclude up to half the education tax mills for qualifying facilities for up to 6 years to promote job growth, with a yearly cap of 45 such exclusions. Local governments must annually report on exemption impacts, including property values and job creation. This directly affects commercial businesses seeking tax benefits, local governments issuing exemptions, and state tax administration.
SB 423 ends specific programs that helped homeowners pay overdue property taxes and avoid foreclosure. It directly affects property owners with delinquent taxes who previously could use these reduced payment options. The bill modifies existing law by setting expiration dates ("sunsetting") for these programs, meaning they will no longer be available after the specified dates. This change removes temporary relief measures, requiring affected homeowners to pay full delinquent taxes or face standard foreclosure processes.
This Michigan bill requires the state attorney general to submit quarterly reports to both houses of the legislature whenever litigation costs exceed $250,000, with more detailed reporting required for cases exceeding $1,000,000. The reports must include financial accounts, explanations of the legal cases, and justifications for the expenditures, ensuring lawmakers can track how state funds are being used in legal proceedings. If the attorney general fails to submit these reports, legislators can seek court orders to compel compliance, and the auditor general must investigate and report on any violations of the new requirements. The bill establishes clear thresholds for transparency and creates enforcement mechanisms to ensure accountability in state legal spending.
HB 5331 prohibits state agencies, local governments, universities, community colleges, and other entities receiving state funds from purchasing certain drones. It extends the same drone purchase restrictions that apply to the federal government to these Michigan entities. The bill amends Michigan's Management and Budget Act to require these organizations to follow federal guidelines when acquiring drones with state money. This directly affects any state-funded organization that might otherwise buy drones for operations.
HB 5517 creates a $0.005 per returnable beverage container tax credit for distributors who charge a deposit on containers, effective for tax years beginning January 1, 2026. The credit adjusts annually based on the U.S. Consumer Price Index starting in 2027. Distributors must attach a specific report (per 1976 IL 1) with their tax return to claim the credit, and any excess credit is refunded. This directly affects beverage distributors handling returnable containers in Michigan.
HB 4346 redirects revenue from Michigan's lawful internet gaming programs to the Michigan Agriculture Equine Industry Development Fund and removes the existing spending limit on these funds. This bill directly affects the state's horse and agricultural industries by providing them with potentially increased funding for development initiatives. The key provision changes a 2019 law (MCL 432.315) to allow all allocated gaming revenue - previously subject to a cap - to flow into the equine fund without restriction. The bill is currently pending in the House Rules Committee after being reported with a substitute amendment.
HB 4576 is the fiscal year 2025-2026 appropriations bill for the Michigan Department of Education. It authorizes specific funding levels for the department's operations and programs during the upcoming state fiscal year. The bill passed the House on June 11, 2025, with 56 ayes, 53 noes, and 1 excused. As a procedural appropriations act, it establishes the legal funding framework but does not detail specific programs or spending items beyond the authorized amounts.
This Michigan House resolution urges the U.S. Senate to immediately pass an unconditional government funding bill (a "clean continuing resolution") to end the ongoing federal shutdown. It criticizes Senate Democrats for blocking votes on such a bill, which would restore critical services like Medicare, VA benefits, and food assistance for Michiganders affected by the 35-day shutdown. The resolution rejects the Senate's alternative proposal, calling it fiscally irresponsible due to projected $1.5 trillion in added debt. The Michigan House adopted the resolution with 54-46 support on November 6, 2025.
HB 4375 amends Michigan's Use Tax Act to limit the tax credit for trade-in value when purchasing new vehicles. It caps the deductible trade-in value at $5,000 for motor vehicles or recreational vehicles (previously $2,000, increased annually until 2018). This change directly affects vehicle buyers and dealers in transactions involving trade-ins, as it reduces the amount that can be offset against the purchase price for tax calculation purposes. The bill updates Section 2(f)(xii) of the Use Tax Act to reflect this $5,000 maximum. The change became effective immediately after the bill passed the Michigan House on October 23, 2025.
